The Broadcaster’s ad-supported subscription service, Peacock, grew by 31 million sign-ups in H1 2021.
Comcast's broadband-first strategy is causing strategic shifts, as the company uses vMPVD to lower churn rates while refusing to allow revenue from its video business dwindle. However, the huge increase in broadband-only customers poses a dilemma, as it is easy to switch broadband providers and difficult to distinguish broadband services.
To reduce broadband churn, Comcast is leaning on video, offering a free Flex box to all new broadband customers with SVOD services like Netflix. Moreover, the company is introducing a “Pay-One” window service from 2022 to migrate its film titles to Peacock, to retain consumers.
Michael Cavanagh, Comcast’s Senior EVP and CFO, says the company will not pursue “unprofitable” TV customers, as it stopped pursuing low-paying consumers from other providers. This will help the brand avoid profit “erosion.”
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